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Hans J Marter

21 January, 2010

THE THREAT hanging over 78 Shetland fishermen who were ordered by the European Commission to pay back council grants appears to have receded.

Josie Simpson.On Thursday Shetland Islands Council's development committee chairman Josie Simpson said he believed a "positive solution" was round the corner.

This follows two years of behind the scene discussions between the council's economic development unit, the EC, the UK government and the Scottish government.

Under the First Time Shareholder Scheme £581,750 was paid out to 78 young fishermen, each receiving an average £7,500, to help them join the crew of a fishing boat.

Mr Simpson said it was too early to make a full statement as he did not want to "jeopardise" the process, which was not yet over.

"This has taken a long, long time but we are making progress towards a satisfactory conclusion. It is at a very sensitive stage at the moment," he said.

His sentiments were echoed by SIC head of development Neil Grant who said "significant inroads" had been made.

Councillors were updated on progress in a report debated behind closed doors.

Sources within the industry indicate that most of the 78 cases have been dealt with and only a few still need to be resolved.

In November 2007, the EC dropped a bombshell on the isles when they ruled that three schemes supporting the local fishing industry breached state aid regulations.

The ruling followed a lengthy investigation triggered by an anonymous complaint to the Brussels about how the SIC was using its oil money to support the fish catching and processing sector.

The three schemes were the First Time Shareholder Scheme, the Fishing Vessel Modernisation Scheme and the Fish Factory Improvement Scheme, totalling more than £1 million in grant support.

Following an appeal and lobbying of European officials, the council were let off the hook on the vessel modernisation scheme and allowances were made on the fish factory scheme in March 2008.

A spokesman for the Shetland Fishermen's Association (SFA) said they had not been involved in the discussions, but hoped for a positive outcome for their members.
 

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